ZDDC(600633) 华创证券·2024-11-06 11:11Investment Rating - The report maintains a "Recommend" rating for Zhejiang Daily Digital Culture Group (600633) with a target price of 14.92 yuan [1][3] Core Views - The company's Q3 2024 performance met expectations, with revenue of 760 million yuan (YoY +26%, QoQ +3%) and net profit attributable to shareholders of 330 million yuan (YoY +451%, QoQ +582%) [1] - The core business remains stable, with significant contributions from investment income [1] - The digital culture sector continues to grow steadily, with the card game "Guan Dan" adding over 13 million new registered users in H1 2024 [1] - The digital technology sector is making progress, with Fuchunyun IDC focusing on energy efficiency and AI integration, and the "Chao News" platform receiving a 140 million yuan strategic investment [1] - The data operation sector is expected to accelerate growth following the consolidation of Zhejiang Big Data Trading Center, which now holds a 50.2% stake [1] Financial Performance - The company's 2024E/2025E/2026E net profit attributable to shareholders is forecasted to be 538/629/707 million yuan, respectively [1] - The 2024E/2025E/2026E EPS is projected to be 0.42/0.50/0.56 yuan, with corresponding P/E ratios of 26/22/19 [2] - The company's 2024E/2025E/2026E revenue is expected to grow at 6.1%/6.8%/6.3% YoY, reaching 3.266/3.489/3.710 billion yuan [2] Business Segments - Digital Culture: The company's gaming business, particularly the "Guan Dan" game, continues to perform well, with strong user growth and operational efficiency improvements [1] - Digital Technology: Fuchunyun IDC is advancing its AI-powered energy efficiency platform, while the "Chao News" platform is expanding its media integration capabilities [1] - Data Operations: The consolidation of Zhejiang Big Data Trading Center positions the company as a key player in the data trading market, with potential growth driven by policy support [1] Valuation and Target Price - The report assigns a 30x PE multiple for 2025, resulting in a target market capitalization of 18.883 billion yuan and a target price of 14.92 yuan [1] - The current price of 11.00 yuan implies a potential upside of approximately 35.6% [3]